Creating an Impactful Solution for Liquidation of Excess Inventory

Consider this: in 2014 consumers returned a record $284 billion worth of merchandise to retailers. That’s a huge number (about equal to the GDP of Singapore) and it is only going to get bigger due to the continued increase in online sales (which typically bring a higher return rate) and relaxed return policies by retailers to drive customer loyalty. What’s more, a lot of that merchandise can’t go back on the shelf. Lack of innovation over the past 50 years for dealing with consumer-returned and excess inventory is costing retailers billions of dollars and can no longer be approached as an afterthought or left to inefficient traditional liquidation methods. This is especially true in today’s climate when every point of operating margin matters so much.

So, how does one create an impactful solution for liquidation of returned and excess merchandise?